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S&p 29, United States 13, U.s. 12, Us 12, New York 9, Texas 8, America 7, Washington 7, Deb 7, Nato 7, Cnn 6, Georgia 6, Dallas 5, Hamid Karzai 5, China 5, Atlanta 5, Hama 5, Missouri 4, Joplin 4, Eastern Afghanistan 4,
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  CNN    CNN Saturday Morning    News/Business. New.  

    August 6, 2011
    6:00 - 7:30am EDT  

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huge television show. i tried to find a character that would be equally as important to a generation of television watchers. hopefully with richard fits patri patripa patrick, i have found a role like that. >> thank you. from cnn center, this cnn saturday morning, it is august 6th. i'm debra ferrick. the country's credit rating has been downgraded by s&p. and new video into the cnn center. real time video of the tornado that ripped through joplin, missouri last may.
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one school surveillance camera caught it on tape. do you use gps to figure out where you are going? it may be wrong. why you may need a printed map in the next few days. first, breaking news out of afghanistan. a nato helicopter has crashed in eastern afghanistan. hamid karzai says at least 38 people were killed. closer to home, americans wake up to the world's economy that we are no longer the gold standard. yesterday, s&p downgraded the long term credit rating from aaa to aa plus. it is a first for the country and embarrassment for president obama. explaining the decision and the s&p said the growing debt with the political acrimony over raising the debt ceiling gives them less ability to pay the
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loans. it comes days after the deal shaving $2 trillion over the next decade. the s&p thinks the deal fell short. after standard and poor's downgrade, the obama administration fired back saying the s&p figures were off $2 trillion. s&p says its decision to downgrade stays. what is next? where do we go from here? felicia taylor is live in new york. this credit downgrade is a stunning wake-up call. >> reporter: completely. we had a aaa rating in this country since 1917. this now means that those countries that invest in the united states have a rating below that of britain, france, germany and canada. that makes it a risky proposition to invest in the united states.
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the reason this is important is interest rates could go higher in the short-term. any kind of investment, credit cards or insurance payments, is going to be at risk. that's why this is critical for every consumer in this country. it's not just about investors and the economy. it is about the entire country overall. what washington now needs to do is get back to work and figure out how that debt deal is really going to work out and satisfy the rating agencies such as s&p. >> on some levels, given the bitterness of the debt ceiling debate, was this a way of the s&p saying we don't believe in your ability, the leadership on both sides to get a deal done and create jobs and cut where it needs to be? sending a message if this is how you deal with the debt ceiling, forget about creating jobs. is that the message? >> reporter: completely. that is exactly the message that
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they are sending to washington. that the lack of consensus, the lack of bipartisan shship, is w is at risk here. we americans are not coming to the table and agrees how to get this country back into a recovery phase. we are not. we saw jobs numbers on friday that was not up to snuff. it was better than expectations, but not good enough. we had a couple of months that were wild cards in terms of jobs. the administration is being scolded and being told you need to come to the table and figure this out and get your ducks in order, so to speak, and understand that we are watching you. from the s&p perspective, they put themselves in a hard place. they were criticized for not watching during the fiscal crisis and not minding the banks at the time. they had to step up to the plate and say, okay, you guys are not
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doing what you need to be doing. we will call you on it. there is a bit of a tug-of-war going on between washington and the ratings agencies. >> this is going to be interesting how it plays out and to see if the leaders of both parties step up to the plate and do what needs to be done to get the financial house in order and get the rating back. felicia taylor, we will check in with you later on. this is unchartered territory for the u.s. economy. one thing is certain. american's money crunch has gotten ratcheted up another notch. poppie harlow has more. >> reporter: you with watch your interest rates on your mortgage go up. more homes are going to sit on the market. prices of homes could fall further. the only silver lining is for
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long-term investors who see a buying opportunity. expect your interest rates to go up. it will be pretty tough for people with middle to lower credit scores to buy cars and new car sales will fall. the car market is not that healthy. when it comes to college loans, what does this mean for your college loan? when you look at loans, similar story. private loans will see interest rates increase. it will be tough to get a loan in the spring. students will have to work more to pay off the increased interest rate. finally, the only silver lining is most students have the financing for next year already lined up. >> poppy harlow for us. some analysts think the credit downgrade is not having an effect on the markets. listen to the global editor for
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reuters told our anderson cooper. it could have a positive impact on some investments. >> we are seeing lots of sovereign debt issues in europe. ironically, the fact that the rest of the world is in trouble, too, is in the short-term to the advantage of the united states. pimco likes to talk about the u.s. as the cleanest dirty shirt. you have to put your money in somebody's treasuries. the u.s. is looking like a pretty good bet. we saw that in the markets this week. >> last night on "ac 360" john chambers explained how lawmakers to have avoided the historic downgrading of the u.s. economy. >> i think they could have done a few things. they could raise the debt ceiling in a timely manner. so much of the debate could have been avoided. as it had done 60 or 70 times
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since 1960 without that much debate. that is point number one. point number two is it could have come up with a fiscal plan similar, for example, the bull simpson commission, which was bipartisan. it hav have a majority vote. it came up with a number of sensible recommendations. >> the bull simpson commission that chambers talked about was the panel set up by president obama to identify ways to reduce the national deficit. it is known as the commission on fiscal responsibility and reform. let's get back to breaking news out of afghanistan. a nato helicopter has crashed in eastern afghanistan. hamid karzai says 38 people were killed. david ariosto joins us on the phone. >> reporter: what seems to be one of the largest losses of
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coalition life in recent memory. we are getting information from hamid karzai's office and it seems the helicopter was traveling in the area that was hit with insurgent activity. it may have crashed. it may have been shot down by taliban forces. the information we are getting from the taliban spokesman it was indeed shot down. 38 individuals. 31 nato members were killed in that crash. it comes at a time of a series of high profile attacks against targets here in this country. the south and east have been areas that have been under the watchful eye of nato and afghan forces. what we have seen in recent days is increased targeting of high
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level officials. a nato helicopter last month was downed in an attack that the taliban took credit for. no one was injured in that attack. >> david, any sense, have the remains been recovered? i know it is too early to tell. is the helicopter secure? >> reporter: the spokesman that we spoke to would only confirm that the crash had taken place. they would not confirm any other details, but a recovery operation is under way. they are looking into the specifics of what happened and if anything can be salvaged. local officials say that roughly eight insurgents were killed in what may have been an exchange. the worst loss of life in some
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time. >> david, thank you. back in the u.s., students at the university of alabama will finally get to walk in a graduation ceremony today. their commencement was supposed to be in may, but was postponed after the tornadoes swept across the state. nearly 250 people were killed that day in april. the school held a candlelight vigil for them last night. if you were hoping to get a tax refund because of the faa shutdown? president obama is making the taxes retroactive. tax collection will begin again on monday for air travel. drivers in their cars were trapped in north carolina. two neighborhoods had to be evacuated because of flooding creeks. check out this hotel room in charlotte. the heavy rain started pouring
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through the lobby in the embassy suites hotel. highways were temporariliy lclod because of the heavy rain. the south central plains and gulf coast states are in store for heat again today. reynolds wolf is in the severe weather center. reynolds, watching the pictures of the water pouring down. it happened quickly. >> it did. i think they will be closed this evening. i'm sure the clean up will begin. one of the big things people would like to clean up is the heat. we are talking millions of americans dealing with temperatures in the 90s and 100s. we will tell you who will get what coming up. what are you watching and which day? cnn saturday. ♪
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♪ i wish ♪ it would rain down ♪ down on me ♪ yes, i wish ♪ it would rain ♪ rain down good morning, houston, texas. it is a scorch era cross the state. if it gets over 100 degrees in dallas, it would be the 36th day in a row. reynolds, it has to be so tough for them to live in that heat. >> it is ridiculous. hearing phil collins sing about it raining. if you look at the temperatures, wichita falls, 110 degrees. that was the high yesterday. mccalister, oklahoma, same situation. in texarkana, arkansas, 108. something else to consider, that doesn't bring in the high humidity. it made it feel warmer. what is more interesting is we will have the same factors that
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are going to accept up in the atmosphere which will make it feel brutal. let's pop up the video and show you what is happening across the nation with the heavy rainfall we had yesterday. let's go to the map and show you how expansive the heat is. from the central plains to the ohio valley, we are seeing the heat pick up. everything you see on the map painted with the orange color and pink. the watches and warnings and advisories. a lot of places with a lot of heat. some places you may be getting some relief into the afternoon with pop up storms. some of that, perhaps, in georgia. in a spot like atlanta, atlanta will have a cooler day with the highs in the mid to upper 80s. in south georgia, the extreme heat with the sea convergence, we will have temperatures in the 90s. in tampa and memphis, 100.
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that is a snapshot on the forecast. deb, back to you. >> they are out there doing rain dances. >> i hope so. whatever it takes. okay. if you can't find your way without a gps, you may want to carry a map this weekend. on thursday, the sun released a massive solar flare that can disrupt gps. it is not just in cars, but in airplanes, too. it causes the gps to misrespect where you are. can you imagine looking up and seeing two moons orbiting the early? astronomers believe that is what you would see 4 billion years ago. however, the two moons collided. they are calling it the big splat theory. the effect, they say, would have been kind of like a pie in the
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face with one moon spreading over the other one. that is how they are explaining why the far side of the moon is more hilly than the side facing the earth. take a look at amazing video. the view from inside the deadly joplin tornado. that is coming up. first, volatility on wall street this week. look at the decision to downgrade the u.s. credit rating. [ man ] behind every business is a "what if." what if we designed an electric motorcycle? what if we turned trash into surfboards?
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welcome back. what a week on wall street. markets wrapping friday after a wild week and then this sticker shock last night. standard and poor's 500 downgrading the aaa credit rating. alison kosick talks about the downgrade. >> reporter: volatility was the word on wall street. the bears powered the bulls and fear driving the train. the big headline when the dow plunged more than 500 points on thursday. the investors were worried that the recovery was coming apart at the seams. especially with the european debt crisis. and whether italy is the next shoe to drop. the stream of negative reports on spending and service earlier in the week added.
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thursday's tumble marked the 9th biggest drop ever. it was only the blue chip's 116th. the dow and s&p have dipped into correction mode. on friday, the july jobs report seemed to stem the pessimism. u.s. employers added 117,000 jobs last month. one positive report does not make a trend. traders tell me they are still worried about the double-dip recession. deb. >> thanks, alison kosik. with everything made in china, it is nice to see something made in the u.s. business is booming. we will take you there next on our passport. [ male announcer ] imagine all of your missed opportunities
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and nadia bilchik is joining me on the morning passport. china getting chop sticks from atlanta. >> chinese use about 45 billion
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chopsticks a year. a gentleman saw the need and saw the fact that in china there is a shortage of trees and lumber. around 10 million houses are built every year in china. he finds in atlanta, georgia, poplar trees and sweetgum trees. he is making 600 chopsticks a minute. >> this is incredible. this was a man who was an immigrant and came to the united states. it is going around. >> isn't that true? the fact he is an immigrant and sees things differently. he exported to china for many years and saw the need. it is a testament that we have immigrants and diversity in the country. he now makes 2 million of the chopsticks a day. what is interesting in the form he makes them. they are considered not the finished product.
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if you take a look, they are the strips. he is export them at a cheaper rate than if it was the finished product. they go to factories where they are polished and finished. >> he is providing the raw goods. >> in abundance. i know you spoke to him. did he tell you where he found the trees or is he harvesting the trees? how did he set up the factory? >> he found the trees in georgia. he looked for a specific tree. he found them and around 2006, he started exploring his options. he went to korea to have these machines specially made. then came and set up a factory in georgia. only started production in may of this year. he will soon be producing 4 million of these raw chopsticks in a year. he will break even. think of the employment.
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>> how many people is he employing? >> hundreds of people. it is taking 24 hours a day six days a week to meet demand. he is still not meeting the demand. one of the things he did say is he is concerned with the publicity he is getting because he doesn't want copy cats. >> he is running a successful business. >> very successful business. two years ago, when he started, getting investments were not easy. he could not get a bank. he got $1 million between family and friends and started the business. it is one of the great success stories. chopsticks in abundance right in georgia. >> there you go. great story. nice to see somebody who has taken a business idea and filling the need. thank you. i appreciate you being here with us this morning. honda recalls 1.5 million
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it's 29 minutes past the hour. welcome back. i'm deborah feyerick. thanks for starting your day with us at cnn. america's credit rating takes a hit from aaa to aa plus. s&p cites too many decisions to downgrade. cnn's senior correspondent alan chertoff has more. >> reporter: it is shocking from the public relations standpoint, but s&p warned of this on july 14th, when they said it was a better than 50% chance of doing it. what they are saying here is that the deal struck this week to avoid default and raise the
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debt ceiling and cut spending isn't sufficient. it is not enough to stabilize the debt situation of the united states. they are also saying, they are making a judgment here on the politics that occurred in washington this past week. the disarray. the fighting. the fact it took until the very list minute, almost, for them to come to a deal. they are saying we don't believe the congress and administration will be able to leverage their agreement into a broader fiscal consolidation policy. they are just giving a thumb's down over what happened in the past week in washington. it is certainly possible that some interest rates could rise from this. the more likely impact is we could have more pressure on the stock market come monday morning. we've already had a horrific week, but this is a blow to the united states without question. in terms of the treasury market,
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that is where it should hit. that, after all, is how the united states borrows money. we issue bonds and notes and short-term bills to investors. they give the united states their money. the united states says they will pay them back with interest. will people run away from those? unlikely. the full faith and credit of the united states still means quite a bit and, indeed, some other major nations have seen their credit rating cut and it didn't have all that much impact on those countries. including japan. this is an embarrassment for the u.s. in the financial markets. the united states now have a lower credit rating than luxomberg and sweden. a quick check of our top stories now. a nato helicopter has crashed in eastern afghanistan. afghan president hamid karzai
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says 31 u.s. service members were killed. all were members of the u.s. special forces. a recovery operation is under way. the taliban has claimed responsibility for the attack. today, a texas jury will be back in court to hear more testimony in the penalty phase of the warren jeffs trial. the polygamous sect leader faces life in prison after sexually assaulting a 12-year-old and a 15-year-old. jeffs asked to be excused from court today. he says he doesn't want to hear his religion downgraded. honda is recalling 1.5 million cars. the part in the transmission can be damaged if the car is shifted too quickly. it could cause the engine to stall. and three months after a swarm of deadly tornadoes swept
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through alabama, students at the university of alabama are finally getting to walk in the commencement ceremony today. it was supposed to be held in may. six students were among the 250 killed on the terrible day. last night, the school held a candlelight vigil in their honor. and this summer's intense heat can be too much for athletes. reynolds wolf is here with us. it is incredible to see the young kids wearing all of the pads and gear and noticing that they are not passing out. >> you think the less you are wearing, the better off you will be. just having some protection when you are out there. one thing that is interesting, the university of texas use a small device called a heat pill where they swallow it. it goes into their digestive
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tract. the trainers are able to use another device about the size of an iphone. they are able to track the body core temperature to track the heat. to track a danger zone. it is easy to see how technology can go a long way toward saving lives. each season, the texas longhorns face the sooners or aggies. the tougher foe is the intense heat. hydration. it is one method the trainer stresses. he applies methods like the core temp pill. the pill is ingested six hours before training begins. that is what i did before my longhorn workout. all right. let's play ball. the heat index? 105 degrees. a quick warm up run and body temperature reading before practice starts.
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>> it has to be a cool 98.6. >> 98.6. try 100.23. >> kenny will pull a player from the field when their body temperature reaches 103. >> that is when you can exhibit signs or symptoms of heat stress. when they get to 104, that is when we pull them from practice or the workout and cease the workout or practice and hydrate them. >> to replicate conditions, kenny puts me through drills. >> one, two, three, four, five. let's go. go through again. come on back. finish through the line. finish. finish. finish. 100.81. that's not bad. hit the next one. go. strike. extend. go. strike. extend. 101.7. >> this is me after 20 minutes
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of light workout in the 105 degree heat. longhorns will go through intense workouts in 45-minute intervals. while doing so, kenny looks for danger signs. >> disorientation. decreased mental acuteness. someone who is laboring in their drill. >> how about we cool off? >> that sounds great. >> one method is this shirt. fitted with a blast of cool air to fill the chambers. not quite as high tech, but more effective is this. the rapid cooling tub. >> oh, good gosh. >> maybe crude, but it works. and that's the mission of trainers like boyd, to keep their players safe. >> a lot of us in athletic training have been witness or
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been a part or know people who have had to deal with someone that's suffered from heat stroke or from a heat crisis. that has really shaped some of the passion and concerns we have as a staff today at the university of texas. >> all part of an effort to keep their players on the field and in the hunt for the championship. >> kenny boyd, the head trainer at the university of texas is truly a giant in the industry. at the same time, he is diabolical. he was enjoying that too much. >> you were doing a really good job. it is incredible that your body went up to 101. i would think that 103 is just unsafe. >> it is unsafe. that is one of the things where they give water breaks. it was frowned upon years ago. they shifted gears and are using a different approach. >> great piece. really interesting. >> thank you very much. today is a day where the
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heat is extreme. look at the map where you see pink or orange, it indicates a place where -- iphone, let's toss it over there. we are talking about high heat and you bring in the high humidity. that is a difference maker. it is extreme heat. in a place like dallas/ft. worth, they had 45 days of over 100 degree temperatures. as we get into sunday, and get into the triple digit heat, guess what? that is when we break a record. it is possible. that heat will be all over the gulf coast and parts of the ohio valley. one big caveat is the sea breeze and high humidity. we might have storms up along the gulf coast and into the ohio valley. they will need it. especially in places close to it. in memphis, 100. 106 in dallas. 81 degrees in chicago. cooler up to the great lakes.
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certainly let's keep our fingers crossed and the rain comes in. that is the wrap on the forecast. back to you, deb. thank you so much. reynolds, you will stick around for this. you will like this story. we are getting a first look at the amazing video out of joplin, missouri. this is joplin high school video. we will have reynolds look at the video and tell us what is going on. ♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] the new hp touchpad. get it now for $100 off, starting at $399.99. ♪
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what if we designed an electric motorcycle? what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and 4g devices like the motorola photon. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com. should i bundle all my policies with nationwide insurance ?
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watch this. on one hand, you have your home insurance with one company. and on another hand, you have your auto with another. and on another hand, you have your life with another. huh... but when you bundle them all together with nationwide insurance... ... they all work together perfectly-- and you could save 25%. wow... it's all in the wrists. ♪ nationwide is on your side and we are getting a first look at some amazing video shot as the devastating tornado ripped through joplin, missouri. high winds caused windows to explode. you can see the cafeteria being torn apart. reynolds wolf is here with us. it can drive a blade of grass
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through a tree. >> these are winds in excess of 105 miles an hour. this was ef-5. one of the things we have to consider is the timing of this. thank heavens this took place on a sunday afternoon. can you imagine if this happened on a monday or tuesday or wednesday with a full capacity school? the aftermath that we have seen shows a community struggling with the damage. we have additional video that will pop up. it is a wasteland in many spots. granted, the people of joplin, missouri have done amazing things in terms of cleaning up. people from all over the world have helped clean up. they still have a long way to go. just the video we have inside the school tells a story of what might have been. we know what happened, but what might have been. it could have been worse.
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>> you look at the school and you think there was an interior court yard where the children could have gone to seek shelter. in this area, do they have areas where they can go for safety if it were to happen? >> many schools do have structures or areas that are considered a safe zone. you really bring up an excellent point. the thing that is terrifiy ieyi about that, you see structures lit with an ef-0 that are have underground areas. the school was able to withstand the strong winds. terrifying. >> when you see the video, you have to ask yourself what sort of traumatic impact it has on the community that not only did they survive it, but also to see it played out again and again
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and thinking about the possibilities. that has to be horrifying. >> no question about it. anytime the skies cloud up or hear a boom of thunder. you will have storms in the area. that is a place that is known for storms. taking a direct hit is mind boggling. >> reynolds wolf, i appreciate it. new violence in egypt. protesters in cairo's tahrir square is wondering why they are being attacked rather than protecting them. the story after the break.
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and there is new violence in syria. anti-government protests broke out across the country again yesterday. the city of hama appears to have taken the brunt of it. witnesses tell cnn that more than 50 people were killed when a government tank fired an artillery shell. we have arwa damon with more. >> reporter: it seems whatever information we are able to get out of hama because communications have been cut off and continue to point an horrific and bleak picture. the city has been without communications and without power ever since the military conflict began. one had fled from his initial position in the northern part of the city. as he was fleeing, he said on the outskirts of the city in the
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suburbs, there were a number of residents that had fled from their homes. they were begging people to let them in seeking safety. he was describing how he heard the sounds of shelling gunfire. since then, it has been impossible to reach anyone to get an accurate picture of what is taking place. this is the government's way of sending a clear message to the demonstrators that despite the reforms, the laws are put into place. this is still a regime that is intent on using military force to quell the demonstrators. the syrian government has been claiming it went into hama to target the gangs. the images we have received from
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hama before the conflict began showed the people gathering peacefully. hama was the gathering of the largest demonstrations to take place in syria. that would be an aggravating factor. if it wanted to deal a decisive blow, hama would be the place to make that clear and increasingly through the message. >> the pictures are stunning to watch. arwa damon, thank you for joining us from lebanon. in cairo last night, the egyptian military broke up a demonstration in tahrir square. about 300 protesters gathered. their peaceful demonstration quickly turned violent.
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problem. you may be on overload. joining me is denise. she is here to tell us how social media can work for you. i am overwhelmed. >> now we are adding google plus to the mix. everybody has all of this stuff you have to keep up with. now are you supposed to do google plus? i like to tell people, feel like you can manage it in 15 minutes a day. don't feel you need an hour or two. you can do it in 15 minutes. if you think about it in 15-minute segments, you can get it done and pick a couple of platforms to be involved. >> what are we talking about? i find it easy to go on twitter. facebook, i find, just too -- i don't have the time for it. >> right. i think i like to say facebook is like a cocktail party. it is not an absolute in your
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life. it is something fun. it is fun to do. you don't know who you will see or talk to all the time. think about it like a cocktail party. it is supposed to be fun. a lot of people are using it for business now. don't feel like you have to use facebook. it is a great way to stay connected to your friends and family and kids. >> what -- how are we overloading our friends and business contacts? sometimes you get multiples. >> i think one of the worst things you can do is link your multiple profiles to each other. if you are tweeting from your facebook page, your friends and followers are getting the same information. they may be the same people. they are tired of the same information. it is a lazy way to deal with social media. i say compartmentalize. >> and what about linking all of
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your posts? how is that an effective use? >> if you have a linkedin profile, create and have and manage a linkedin profile. you can link your updates to your twitter account. if you have a twitter account that is business related, that is great. if you are linking your facebook to your business twitter or business followers on twitter and you are talking about your son's little league game, that may not be cool. think about what you are doing. i don't recommend it. >> clearly, as we wrap up, it is about sending information to your friends that is fun or your business folks that is more in line with what they expect. >> right. i think the main thing is people should take this seriously. it is their brand. it is their reputation. they should take the time to do it right and analyze what they are doing and why they are doing it. >> you can't get away from your brand.
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denise, thank you. i appreciate you joining us. a stowaway aboard a delta flight gave passengers a scare. was it a bird or bat? we will get another look in two minutes. hat if we turnedrash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and 4g devices like the motorola photon. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com. can help you find the answers. any questions? no. you know... ♪ we're not magicians ♪ we can't read your mind ♪
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let's go cross country now for the look at stories cnn affiliates are covering. first stop is augusta, georgia. a surprise for a 5-year-old girl's birthday. an unexpected visit from her dad who has been deployed overseas for months. the girl refused to celebrate her birthday without her dad.
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and to the town of tonawanda, new york. the current record of walking under water is 60 feet. this 20-year-old strode 230 feet. up in the air in madison, wisconsin, was it a bat or bird? regardless, passengers on board the delta airlines flight may wonder how it got through security. they cornered the creature near a bathroom. the spokesman for the airline said they are not sure if it was a bat or a bird. oh, well. it looks like a bat to me. and from cnn center, this is cnn saturday morning. good morning. i'm deborah feyerick. we have the latest on the downgrade for the nation's credit rating.
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first, a nato helicopter has crashed in eastern afghanistan. afghan president hamid karzai says 31 special forces troops in the u.s. are killed in the incident. a recovery operation is under way. the taliban has claimed responsibility for the attack. we will continue to follow the story and bring you the latest. now to america's stark new financial reality. we are no longer the gold standard as it relates to the world's economy. yesterday, s&p downgraded the nation's long-term sovereign credit rating from aaa to aa plus. it is a first for the country. and an embarrassment for president obama. explaining the decision, s&p says the nation's growing debt coupled with last week's political bitterness over raising the debt ceiling gives them less faith in the nation's ability to pay its loans. it comes days after congress cut the debt ceiling deal.
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in essence, s&p thinks the deal fell short. after s&p's notification of the credit downgrade, the obama administration fired back saying the s&p figures were off by $2 trillion. s&p acknowledged that, but said the decision to downgrade stays. what's next and where do we go from here? cnn's felicia taylor is live with more. felic felicia, lots offi incense over this happening. >> reporter: this is something we have not seen since 1917 when the ratings agencies imposed ratings on countries. what this means is now the united states no longer has a aaa rating, but it is aa plus. we are now below what is considered britain, france,
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canada, germany in terms of their treasury investments. we rank below them. that is significant. obviously, we used to be the premier investment country of the world. that means the investments are riskier across the world. that makes it a downfall for the united states. moving forward though, what do we have to worry about? we will look at whether or not democrats and republicans can come to the table and effectively govern. that is the problem the s&p has said they are not able to do especially when it comes to the debt ceiling. that is the issue up until now. fitch is still looking at whether or not the united states needs to be downgraded as well. they have us on negative outlook. we have to wait and see. >> the white house came back and said there is no economic reason to downgrade the united states, but at the same time, s&p said
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the plan showed the debt ceiling plan showed no sort of logical growth enhancement measures and no measures to create jobs. that was part of their thinking. >> reporter: that is exactly right. the problem with this whole debt ceiling deal is we don't exactly know where the cuts are going to come in the future. where that deficit reduction will happen. where we will increase revenues and where we get the jobs coming from. those things are not spelled out. that is the problem when it comes to the ratings agency. they don't see how this economy is actually going to begin to grow in the future. that is the problem. democrats and republicans haven't come to the table to agree on anything. that deal was to meet a deadline. it did not announce anything in the future as to how the economy will start to grow. >> right. felicia taylor, thanks. the other thing they said is a
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aaa sovereign nation should separate issues. something else with the s&p. last weekend, with all of the wrangling over the debt ceiling and last-minute deal that was ultimately cut, it may have hurt more than it helped. here is s&p's managing director john chambers on how america's politics played into the s&p's decision making and how the downgrade to have been avoided. >> i think it could have done a few things. the first thing it could have done is raise the debt ceiling in a timely manner so much of the debate could have been avoided to begin with. as it had done 60 or 70 times since 1960. that is point number one. point number two, it could have come up with a fiscal plan, similar to the bull simpson commission, which was bipartisan. although it did not have a supermajority vote. it had a majority vote.
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it came up with a number of recommendations. that would have been a start. >> the bull simpson commission that chambers talked about was the panel set up by president obama to identify ways to reduce the national deficit. now the super committee created by the debt deal in congress will identify ways to bring down the deficit. athena jones is live in washington with more on this. this rating changes puts more pressure on congress. on both sides to figure this out and to try to get jobs. >> reporter: it absolutely does, deb. this is an indictment of congress. s&p is saying that let's look at the dysfunction that we is seen over the last several weeks or months. no ability to agree to come together. it took until the last minute to come together on the debt deal. if you look at the s&p statement on the decision throughout it is it sprinkled to reference to politics. there is pessimism over the
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parties coming together to reach real reductions in the future. the whole issue of the debt ceiling and the threat of default have been used as political bargaining chips. this deal that was struck last week kicks the can down the road. now everything is going to be dependent for future reductions on the joint select committee. they left aside if there are tax revenues involved. the s&p statement says the republican party is against that. without singling out either party, the s&p is calling on congress to come together and do something convincing and show that they will be able to reach consensus without the political back and forth down the road. deb. >> it is interesting. it is sending a message of palpitable leadership to show things getting done in washington. i think even president obama said they don't want a dysfunctional government. has the president said anything this morning? >> reporter: he hasn't said anything. he is at camp david.
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we know he was briefed on the downgrade before he left for camp david. no more news out of this. even in the pushback to the downgrade, certainly the treasury department noted that the s&p had made what they called this big mistake in accounting in figuring out the debt to gdp ratio. they said there was no economic reason behind the downgrade. the political reason is no less important or difficult to deal with. what is interesting is soon after the news came out, we got the slew of e-mails from congress and candidates. it looks like the same argument continues. you have republican members of congress saying this shows that there has been too much spending. we need a balanced budget amendment. you have democrats saying we need a more balanced approach. >> athena, thank you for joining
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us. great information. it has been six months of training for our dr. sanjay gupta and his team of fit nation. he joins us live from the new york triathlon. that is coming up next. d it'sheo its kind designed to realign naturally with every blink so now, i'm seeing more clearly. [ male announcer ] learn more at acuvue.com. ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. [ recorded voice #2 ] turn right on hill street. go north for two miles. ♪ [ man ] this is onstar. i got a signal there's been a crash. do you need help? yes, please. i've got your gps location. i'm sending help. [ female announcer ] introducing onstar fmv. get it installed on your car at best buy or visit onstar.com for more stores.
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♪ the new york beat there. training for the new york city triathlon is dr. sanjay gupta and six fit nation challenge. sanjay joins me from new york. is the fit nation team ready to go? >> i could tell you almost without a doubt, the answer is yes. they have been preparing for quite some time. it is like studying hard for a test and feeling you are
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completely prepared. to visualize the race. you can see behind me, deb, that is where they start. they will jump into the hudson river tomorrow right around this time. maybe a bit earlier and swim a mile down the hudson river. they will get out and bike for 26 miles. get off the bikes and run a 10k. six miles. they visualize the course. they have been training and doing the transitions from sport to suppo to suppoport. >> how have they transitioned? >> i think they would call classify themselves as a couch potato. that was the point. our six pack, as we call them, represent america. they represent a cross section of people who think about this thing.
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have a triathlon on their bucket list, but never get around to it. they make the video and sent it in to join us. really made this commitment. none of them had done one before. we have several athletes who have come from different walks of life. kendrick works in the health care profession. weighs about 350 pounds at the beginning of this and has lost a significant amount of weight. his point is to get fit. he biked 30 miles last week and swam a mile. we have nina. she is 58 years old. she said 58 is the new 28. i love that. and dr. scott, another member of our six pack. a pediatrician who is on the frontlines of the childhood obesity epidemic. he said i have to practice what i preach. he now weighs what he weighed in
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the mid '80s. he is on no medications now. it is food and it is exercise as medicine for him. remarkable. >> that is incredible. we are all rooting for them here at cnn. we know they will do a great job. what do you have coming up for us at 7:30? >> you will meet all of them. we are also going to show you what it takes to be a triathlete. we will meet a man named raja. he has competed in iron mans. he specifically has three limbs missing. >> thanks, sanjay. it is coming up quickly. another swelters day in texas. 35 straight days of record heat. reynolds wolf is watching that. >> it is unbelievable the heat they are dealing within texas. the way it looks right now, they
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don't have relief in sight. next weekend, they may tie or surpass a record. also, we might see a bit of relief in the southeast, too. more on that coming up. you are watching cnn saturday morning. i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness.
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get back to the things that matter most. good job girls. ask your rheumatologist if enbrel is right for you. the south central plains and gulf coast states are in for extreme heat today. reynolds wolf is looking at that in the forecast. >> absolutely.
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if you get outside and do work or you exercise, the time to do it is early. charleston, 75 degrees. 75 in atlanta. it is a cool time of day. on the other side of the coin, it is hot in dallas, but 87 degrees already. three degrees shy of 90. the heat will be extreme. 35 days straight with triple digit temperatures. one place we might see a bit of relief could be in parts of the southeast. perhaps in portions of the ohio valley. storms popping up will cool things off. i would expect that in the southeast. in texas, the heat will be relentless today. the highs in dallas are expected to go to 106. 94 in kansas city. the string of 70s and 80s in portland and seattle. 77 is the expected high in los angeles. 70s and 80s in boston and new
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york. that is the quick look at the forecast. let's get that out of there. back to you. thank you, reynolds. have you looked at your 401(k) statement? we have some investing tips that could ease your fears. ♪ sing polly wolly doodle all the day ♪ ♪ hah
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any questions? no. you know... ♪ we're not magicians ♪ we can't read your mind ♪ ♪ read your mind ♪ we need your questions ♪ each and every kind ♪ every kind ♪ will this react with my other medicine? ♪ ♪ hey, what are all these tests even for? ♪ ♪ questions are the answer ♪ yeah ♪ oh
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♪ at great clips, quality and value have never looked more atractive. relax. you're at great clips. we have been telling you about two major financial stories this week. the dow dropping 512 points and now the country's credit rating being downgraded. joining me now is clyde anderson. he will break down these stories. let's start with the s&p decision to downgrade the aaa rating to aa plus. >> aaa means the best credit rating possible. if you have an 800 score, it is the best possible. now they downgraded that and you
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have challenged credit. it will be harder to borrow money and you will pay more for it. >> what does that mean for the average american? >> it could be higher rates on homes or cars. the interest rates could increase. your investments may not be secure as far as the bonds or safe investments. >> and we are talking about home loans and college loans. >> and 401(k). if you invest in treasuries, it will be rocky. >> but everybody. it has destabilized everybody. >> exactly. >> you have the folks who don't have jobs. the folks who do have jobs. that is becoming more difficult for everybody. it is the under current. talk about the dow and investing. that fell 512 points. it rallied 80 points. what do people do with their money? >> i think people have to see what they are invested in right now. after all of the debt talk t would be shaky. we are expecting that. we are expecting that to come down a bit.
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it will eventually come back. the market is cyclical. what type of money are you playing with? retirement savings and you need a certain amount of money? don't react right away. don't panic. don't go on emotion and fear. you have to play it out and be calm. know what are you investing in. understand the the risk. you are not invested in all tri treasury. make sure the person you are dealing with is someone you can trust. there is no one right answer. your risk may be different than my risk. we have to understand what we are in it for. >> i think you are right. as far as when it comes to just realizing there is no one right answer. we all want a right answer. we want to put our money in and make sure it grows and grows without risk.
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we have to be realistic. >> no magic pill. >> clyde anderson, thank you so much. our own dr. sanjay gupta is in new york. he is up early this morning getting ready for the new york city triathlon. we will head that way after the break. [ male announcer ] imagine all of your missed opportunities
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agers actually tend not to have healthy habits. centenarians have a higher level of hdl. they have genes that protect them against cardio disease and alzheimer's. basically it is the luck of the draw. just ask this 103-year-old. >> oh, boy, do i eat dessert. >> what is your favorite? >> chocolate. chocolate cakes, cookies. every day i eat cookies. every single day. >> and researchers warn if you don't have those great genes, you can't eat desserts every day or expect to live to 100. if you don't want to count on the genes, there is always exerci exercise. up next, a special edition of dr. sanjay gupta. he is in new york for the new york triathlon.
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i heard you have to get up at 3:30 in the morning for the triathlon. how do you have enough energy left for the race? >> part of it is you go to bed early, deb. there is so much adrenaline when you do something like this. there is so much cheering and music and energy. deb, by the way, next year, about the same time, you could be out here with us as well. come join us. you don't have to commit right now on television. >> think. think. think. >> i'll call you later. >> we are looking forward to it. >> thanks, deb. >> absolutely. >> i appreciate it. stick around. good morning. welcome to the program. i'm dr. sanjay gupta. the triathlon is finially here. we are coming to you from the banks of the hudson. tomorrow morning, more than 3,000 athletes will jump

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